re: How does the FTC have the authority to do this - Non Compete ?

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would the non-compete apply to my company's product and confidential information?

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Would all depend on what it said. The specific non-competition language probably would not. But as I mentioned in the other post, language protecting confidential/TS information is separate.

The sentences just usually appear near each other in a document titled "Non-Competition Agreement".

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A business owner should have the right to offer employment based on the agreement that you will not take my company information and use that to take away my business.

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As far as I understand it, this new rule does not prevent the business from doing that, or imposing non-solicitation clauses to protect client bases.